Fannie Predicts Home Prices and Sales to Drop in 2023 More Than Expected

Fannie Mae has once again reduced its mortgage origination forecast in its latest U.S. economic outlook report. The GSE now expects total single-family home sales to slow by 18.1% relative to 2021, a further downward revision from the previous estimate of 17.3%. This estimated slowdown is accompanied by a projected home price decline of 1.5%, both of which are impacted by rising interest rates in the housing market and the rapid tightening of monetary policy by the Federal Reserve.

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